Costa Rican Tax Authority now requires National Large Taxpayers declaring losses or zero profits to automatically submit

• National Large Taxpayers who declare losses or zero profits must now submit audited financial statements automatically, without waiting for a request from the Tax Authority.
  
  
• Before this reform, National Large Taxpayers who declared losses or zero profits were only required to submit audited financial statements after a formal request from the Tax Authority.
  
  
• Taxpayers with losses or zero profits in fiscal year 2023 have a specific deadline to submit their audited financial statements.
  
  
• For taxpayers other than National Large Taxpayers, the rules have not changed — i.e., those taxpayers are not required to submit audited financial statements unless the Tax Authority formally requests them.

On 15 February 2024, Resolution No. MH-DGT-RES-0002—2024, issued by the Tax Authority, was published in the Official Gazette (available here, only in Spanish). This resolution introduces significant changes for National Large Taxpayers who report losses or zero profits on their Corporate Income Tax returns.

Key changes

Under the new resolution, National Large Taxpayers who declare losses or zero profits are now required to provide their audited financial statements without any prior request from the Tax Authority. These statements must be submitted within three months following the close of the Corporate Income Tax fiscal year. An extension of this deadline may be granted for an additional three months, should the taxpayer present a duly justified request due to unforeseeable circumstances or force majeure, at the discretion of the Tax Authority.

Background and previous requirements

Prior to the reform, the Tax Authority was required to formally request the submission of audited financial statements from taxpayers that had declared losses or zero profits, allowing a three-month period for compliance. This period could also be extended by another three months upon a justified request by the taxpayer.

Implications for Fiscal Year 2023

For the Fiscal Year 2023, National Large Taxpayers declaring losses or zero profits must submit their audited financial statements within three months after the deadline for filing their Income Tax return.

Other amendments

Additionally, amendments have been made to articles 4, 5, and 6 of Resolution No. DGT-R-46-2014, concerning specific criteria for the presentation and submission of audited financial statements.

Effective date and retention of other provisions

The changes introduced by Resolution No. MH-DGT-RES-0002—2024 are effective upon their publication in the Official Gazette. All other provisions contained in Resolution No. DGT-R-46-2014 remain in effect.

Contact Information

For additional information concerning this Alert, please contact:

Ernst & Young, Costa Rica

• Rafael Sayagués
  
  
• Randall Oquendo
  
  
• Daniel Quesada

Published by NTD’s Tax Technical Knowledge Services group; Carolyn Wright, legal editor

For a full listing of contacts and email addresses, please click on the Tax News Update: Global Edition (GTNU) version of this Alert.